Pidilite Industries (PIDI IN) – Q4FY26 Result Update – Positive demand outlook, expect steady returns – BUY
Published on 08 May 2026
PIDI posted strong momentum, led by robust 15.4% UVG in C&B during 4Q. EBITDA margin expanded 182bps YoY, supported by healthy GMs of 56.5%. We believe the strong 4Q performance may not sustain in the coming quarters given cyclic peak in margins, volatile input costs and waning impact of channel stocking in 4Q26.
PIDI is well positioned to sustain growth, driven by continuous innovations, strategic tie-ups to introduce technologically advanced products, and 2–4x growth in pioneer and growth categories (45% of sales). Near-term margin outlook remains uncertain given volatile crude prices amidst ongoing geopolitical crisis and investment in new categories. We estimate 12% EPS CAGR over FY26–28 and assign a DCF-based target price of Rs1,729. We expect steady but back ended returns given rich valuations of 47.9xFY28. Retain BUY.
